Saudi Arabia issues VAT exemptions for first-time homebuyers

Saudi Arabia’s Ministry of Housing has issued 17,000 value-added tax (VAT) exemption certificates for first-time homebuyers in 2018, the ministry spokesperson Saif Al-Swailem told Al-Eqtisadiah newspaper on Sunday.

The ministry is cooperating with other government authorities to set requirements for completing electronic registration of public lease contracts.

“Ejar portal is ready for integration with all government services. Ejar is working with state-run Saudi Electricity Co. (SEC) to link utility invoices to the electronic unified lease agreement,” Al-Swailem said.

In January 2018, Saudi King Salman issued a royal decree that the state will bear the burden of VAT in some situations, including the first purchase of a house that is valued at up to SAR 850,000, Argaam reported.